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V1335-16 31 March 2016 · SG de Impuestos sobre el Consumo Criterion in force
IVA · derecho de vuelo

Creation of air rights through a forestry consortium is subject to VAT at the standard rate of 21%

A local council has requested a ruling regarding the taxation of a consortium for forest reforestation, where land is transferred to a commercial company in exchange for a share of the profits. The DGT has determined that the transaction is subject to VAT at the standard rate because the council acts as a business operator by granting the use of the asset.

The question raised

Question raised: Taxation of the aforementioned transfer.

The DGT's ruling

The transfer of rights derived from a forestry consortium, specifically the right of flight, constitutes a provision of services subject to VAT. The City Council holds the status of a taxable person when granting the right to use or enjoy the forest land. Since the owner is the one granting the exploitation rights, the special regime for agriculture, livestock, and fishing cannot be applied, and the general rate of 21% must be applied.

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